Tom Osborne said Tuesday a tax cut is needed to jump-start Nebraska’s economy — and it’s overdue. If elected governor next year, Osborne said, he’d propose “a reduction in overall tax rates” as a critical first step to move Nebraska into a more advantageous economic position. More Nebraska stories

That could have started this year, he said, but instead state spending was increased by 7.2 percent, “considerably above what the state can tolerate to be competitive.”

Gov. Dave Heineman, Osborne’s opponent in next year’s Republican gubernatorial primary race, wanted to “make sure the economy was moving in the right direction” before considering tax cuts, responded Aaron Sanderford, the governor’s spokesman.

Heineman concentrated on economic development incentives this year, Sanderford said, and has clearly signaled his intention to “look at ways to provide individual tax relief” next year.

In an interview at his campaign headquarters in Lincoln, Osborne said he is “not seen as a Republican insider” in his primary contest with Heineman, who has a long association with the party.

Omaha businessman Dave Nabity is the third man in the GOP race.

Although he has raised more than $1 million for Republicans in Nebraska and outside the state, Osborne said, “That seems to be discounted, and why I don’t know.”

Nevertheless, the 3rd District congressman said, he prefers to be “seen as someone anxious to represent the whole state, all the people, Republicans, Democrats and independents.”

Republican state executive director Jessica Moenning said both Heineman and Osborne have “a lot of high-profile Republican supporters.”

The gubernatorial scrap is “shaping up to be a very tight race,” Moenning said, “and we have a great tradition of coming around and supporting the winner. We’ve got two guys who both have served the Republican Party very honorably.”

Osborne said he’s no more attentive to narrowing poll results — a 12-point advantage for him over Heineman in the most recent survey — than he was to point spreads when he was Nebraska football coach.

And, he said, he will not relax his self-imposed campaign donation limits despite signs of a competitive race.

Those limitations — no PAC contributions, no corporate contributions, a $1,000 limit per election for individual contributors — probably reduce the potential size of his campaign war chest by one-half to two-thirds, Osborne said, restricting his ability to buy TV advertising time.

But, Osborne said, his experience in Washington has “reinforced my view that large contributions do really skew the way things work, and not in the best interest of the country.”

An example: failure to enact legislation authorizing reimportation of less costly prescription drugs from Canada. Pharmaceutical companies opposed the legislation, Osborne said, and “poured money into various campaigns.”

If he is elected governor, Osborne said, he wants the average citizen to be able to believe that “whatever I decide hopefully was not influenced by special interests.”

Among issues he’d concentrate on are outmigration, education in entrepreneurship, increased venture capital financing, economic development tax credits, development of bioscience, distance learning, tourism development and hunting promotion, Osborne said.

He’s determined to address underage drinking and methamphetamine use, both of which have a devastating effect on lives and exact a huge economic cost, he said.

“The thing I feel is holding the state back economically is high tax rates,” he said.

“Seven percent average increases in state spending far outstrip economic growth and the inflation rate.”

Osborne said he would ask private sector representatives to examine state government and recommend efficiencies that could reduce costs. That could be accomplished while protecting education and health care, he said.

“People had a chance to look at me run something for 25 years,” Osborne suggested.

That experience as head football coach required management skills, he said.

“It was public, belonged to the whole state and was expected to be at a high level,” Osborne said.

“And, for the most part, we delivered.”

Reach Don Walton at 473-7248 or at dwalton@journalstar.com.